Wednesday, April 20, 2011

CELH: A Spike in the Flatline, Preliminary Q1 Numbers Offer a Glimpse of Life

After announcing fourth quarter numbers at about the last possible minute, Celsius Holdings provided a glimpse into the first quarter numbers this week, and those numbers indicate that a turnaround from the monumental downtrend in sales growth may be in effect.

The $2.2 million in preliminary sales showes a marked increase over the Q4 numbers, but it's still below the take for same quarter of the previous year.

The difference is, however, that the company has stripped all the marketing and ancillary costs and lost only $500,000 - I say "only" because the loss was nearly six million in Q1 of 2010.

If there is a positive of the last few quarters for Celsius Holdings, it's that by now - after the mass marketing campaign - management knows where the product is sticking and where it isn't; that's something to build on.

That said, the company needs money.

That brings up the next item of the Q1 announcement, that "Catalyst Financial  LLC, a full service investment banking firm, to advise the company on strategic alternatives, including a potential sale of the company."

That statement would have me believe - because the "potential sale of the company" was highlighted - that selling the company is priority one right now, because there have been other players involved before to advise on "strategic alternatives." 

Of course, this is all only my speculation and opinion and the story will have to play itself out.

We all know that 2010 was ultimately a wash for Celsius, but 2011 is a whole new year - and it looks like the year is starting off on an up-note.

Stay tuned.

Disclosure:  Long CELH.

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